Summary of Government Policies
Special Stamp Duty (SSD)Buyer Stamp Duty (BSD)Double Stamp Duty (DSD)Loan RatioStress TestingMortgage Insurance
Home BuyerApplicable
( Detail )
Applicable for any person or entity, except a HKPR
( Detail )
Application to the Mon-first tie buyer (includes Residence, commercial, industrial, shops and car park) ( Detail )Applicable
( Detail )
Applicable
( Detail )
Applicable
( Detail )
Commercial and Industrial Properties Buyer-- Application to the Mon-first tie buyer (includes Residence, commercial, industrial, shops and car park) ( Detail )Applicable
( Detail )
Applicable
( Detail )
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Mortgage Calculator
Special Stamp Duty (SSD)
The adjusted SSD will have three levels of regressive rates for different holding periods –

( i )   20 per cent if the property has been held for six months or less;

( ii )  15 per cent if the property has been held for more than six months but for 12 months or less; and

( iii ) 10 per cent if the property has been held for more than 12 months but for 36 months or less.
Buyer’s Stamp Duty(BSD)
The BSD will be charged at a flat rate of 15 per cent for all residential properties, on top of the existing stamp duty and SSD, if applicable, acquired by any person or entity, except a HKPR. Exemptions will be provided to certain transactions including, for example, those involving a HKPR and his or her close relatives who are not HKPR.
New Stamp Duty (Double Stamp Duty DSD)
On 22 February 2013, the Financial Secretary announced that the Government would amend the Stamp Duty Ordinance to adjust the ad valorem stamp duty (AVD) rates. The new AVD rates are as follows.

The new stamp duty rates will not apply to Hong Kong permanent resident buyers who are not beneficial owners of any other residential property in Hong Kong at the time of acquisition of a residential property.

(Where the stamp duty calculated includes a fraction of $1, round-up the duty to the nearest $1.)
Amount or value of the consideration Rate
Exceeds Does not exceed
- $2,000,000 1.5%
$2,000,000 $2,176,470 $30,000 + 20% of excess over $2,000,000
$2,176,470 $3,000,000 3%
$3,000,000 $3,290,330 $90,000 + 20% of excess over $3,000,000
$3,290,330 $4,000,000 4.5%
$4,000,000 $4,428,580 $180,000 + 20% of excess over $4,000,000
$4,428,580 $6,000,000 6%
$6,000,000 $6,720,000 $360,000 + 20% of excess over $6,000,000
$6,720,000 $20,000,000 7.5%
$20,000,000 $21,739,130 $1,500,000 + 20% of excess over $20,000,000
$21,739,130 - 8.5%
* The new AVD rates are subject to passage of the relevant legislation.


Remarks:

The Hong Kong Government proposes to relax the "six-month" timeframe for owners having acquired a new residential property before disposing of their original one. To specify the "six-month" timeframe under the current arrangement in the Bill be adjusted to commence from the conveyance on sale instead of the agreement for sale and purchase of the newly acquired property.

Also, the government proposes a slight modification to the "two-year" timeframe for application to IRD for stamp duty refund as specified in the Bill. While maintaining the two-year application timeframe after the execution of an agreement for sale and purchase of the newly acquired property, and include a new clause to allow for application within two months from the conveyance on sale of the original residential property, whichever is the later. This is meant to enable buyers of changing properties, including those who acquire uncompleted flats, to apply for refund after completion of transactions to cater for actual circumstances.

Another adjustment is related to the exemption arrangement in respect of acquisition of a residential property with a car parking space. In accordance with the Bill and the prevailing practice by the Stamp Office, when a HKPR acting on his or her behalf in acquiring a residential property and a car parking space by a single instrument, the concerned residential property in the transaction can be exempted from the doubled AVD while the car parking space will not be exempted given that it is a non-residential property.
Load Ratio limitation
Prudential Supervisory Measures for Mortgage Lending - First Time Property Buyers (Apply with provisional sale and purchase agreement signed on or after 23 February 2013.)
Value of properties The maximum loan-
to-value (LTV) ratios
debt servicing ratio (DSR) debt servicing ratio (DSR)
≥ HK$10 mn 50% - N/A
≥ HK$7 mn but
< HK$10 mn
60% $5mn N/A
< HK$7 mn 70% $4.2mn The Insurance Eligibility : The Maximum property value is $6mn
Value of properties Loan-to-value ratio Maximum loan amount
at origination
>$4.5mn ~ $6mn 80% $4.8mn
>$4mn ~ $4.5mn 80% ~ 90% $3.6mn
< $4mn 90% $3.6mn
Note 1 : Applicants whose income is derived many from outside Hong Kong, the loan amount is usually 10% lower. Note 2 : The mortgage rate will be decreased from 50% to 40% (Approved by NAV)
LTV ratio for the Non-owner occupied property, commercial and company buyers
Types of Property The maximum loan-to-value (LTV) ratios maximum loan tenor
Non-owner occupied property (with tenancy agreement) 50% 30 years
Owned by company 50% 30 years
Non-residential Property: Shops, Office, Industrial property 40% 30 years
Standalone car park spaces 40% 15 years
Stress Testing
Banks must assume a mortgage rate increase of 300 basis points, instead of the existing 200 basis points, in stress-testing mortgage applicants’ repayment ability. He added this measure will apply to mortgage loans for all property types.
Revisions for Mortgage Insurance Programme (MIP)
The Hong Kong Mortgage Corporation Limited (HKMC) announced that revisions will be made to the eligibility criteria for the Mortgage Insurance Programme (MIP). The revisions will apply to MIP applications with provisional sale and purchase agreement signed on or after 23 February 2013.

For homebuyers who have executed the provisional sale and purchase agreement on or before 22 February 2013, their mortgage loan applications may be submitted by the MIP participating banks for processing in accordance with the existing scope and criteria of the MIP.

Currently, properties with value at or below HK$6 million are eligible for the maximum MIP cover of 90% loan-to-value (LTV).

After the revisions, only mortgage loans of properties with value at or below HK$4 million will be eligible for the maximum MIP cover of 90% LTV.

Properties with value above HK$4 million and below HK$4.5 million will be eligible for MIP cover up to HK$3.6 million, being 80-90% LTV, while properties with value at or above HK$4.5 million will only be eligible for the maximum MIP cover of 80% LTV. The cap on the value of properties under MIP will remain unchanged at HK$6 million.

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